CHICAGO (AP) - Coal producer Walter Industries Inc. said Monday that its subsidiary United Land Corporation has acquired Alabama-based Taft Coal Sales & Associates for $20.2 million.
The acquisition also includes the assumption of $3.3 million of debt. Walter Industries said it is expected to contribute to earnings in 2009.
Tampa, Fla.-based Walter Industries produces and exports metallurgical coal and operates a mortgage financing and homebuilding business. It said the deal will boost United Land's annual coal output to about 2 million tons from 1.4 million tons.
Privately held Taft, based in Jasper, Ala., operates a surface steam and industrial coal mine with annual production capacity of approximately 600,000 tons and about 100 employees. It has reserves of about 4.3 million tons.
Walter also said it has started up a second longwall mining operation at its Jim Walter No. 7 mine in Alabama. The company said it now expects to have about 11 million tons of total coal production capacity in 2010, factoring in the acquisition and the Jim Walter expansion.
Shares of Walter Industries sank $6.56, or 8.6 percent, to $69.92 in midday trading. |